FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Information About The Wacol Small Business Loans
Let me know about the Wacol Small Business Loans
Wacol unsecured loans provides the range of $5,000 to $100,000. The terms range between 3 and 24 months and cash flow-friendly repayments which can be made daily or weekly.
How is this Unsecured Loan different from the traditional business loan?
You can apply for your Small Business Loan in under 10 minutes on the internet or over the phone. You’ll get an answer within the same day and the funds could be in your account within 24 hours. Traditional company loans have an annual rate of interest plus other fees and charges. We offer a company loan is a loan that is priced upfront and you’ll be aware of the total amount payable including any fees, charges or charges. This is then broken down into weekly or daily installment amount.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for nearly every company need, such as the management of cash flow, business remodels and marketing for purchasing inventory or new equipment, or as general working capital and much more. The loan is not available for personal reasons.
About the Larger Wacol Business Loans
What is the Larger Wacol Business Loan?
The Larger Business Loan is a larger amount of loan to help business expansion opportunities. Loans are between $100,000 and $500,000 over a fixed term up to 36 months. Repayments are either weekly or fortnightly to work with you cashflow.
How is the Origination Fee calculated?
This Larger Business Loan has an Origination Fee, determined at 2.5 percent of the loan amount.
Am I eligible for the Larger Business Loan?
In order to be eligible for a loan in this amount the business needs to have been operating for at least three years and have an annual turnover of $700,000. The applicant must also be a New Zealand Citizen (or Permanent Resident) over 18 years as well as own a New Zealand business (with a valid NZBN/IRD) and be able of proving at minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan can be used for almost all company reason, such as company remodeling, buying equipment or inventory, as general working capital and much more. The loan cannot be used for personal reasons.
Is the Larger Business Loan one that requires security?
Asset security is needed to obtain funding above $150,000. It is usually by taking a charge on assets and can include registering this in the PPSR or filing as a caveat.
A director’s or personal ensure is a commitment to repay credit that is general in nature rather than stipulating security over an asset. The person who is signing the guarantee is personally liable if the business borrower is unable to re-pay the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including items or assets). The PPSR gives priority over personal property to be granted according to the date the security interest that is registered.
An affidavit is an official form of document to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re seeking the Larger Business Loan of $250,000 or more we may be able to provide an initial pre-approval that will help smooth out the process. We could be able to do this without a credit verification and within 6 hours of the initial application. The pre-approval is based upon a preliminary assessment which includes you answering a few financial well-being checks. This is neither an offer nor a guarantee of finance. Acceptance without condition is subject to a full credit assessment and any offer that you receive could be subject to different terms.
The application process
Do I qualify for funds?
You may be eligible for a company loan if you;
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months worth of trade (for you to qualify for unsecured loan $5K – $100K) or 3 years of trading (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Complete the online form within a couple minutes, and a dedicated business loan specialist will contact you to help you.
To be eligible for up to $100,000 you’ll need identification details (valid Driver’s Licence) as well as a valid NZBN/IRD and at least 6 months of bank statements.
In addition, for larger loan sizes, you’ll require:
$100K to $250K: Application details including credit approval, 6-12 months of bank statements, IRD statement (if loan above $150K).
$250K-$500K: Application details including credit consent as well as 12 months of bank statements, IRD statements as well as the two most recent years’ financial statements, and interim current financial year financials including Aged Payables, Aged Receivables summaries.
How soon will I hear a decision?
For an unsecured loan ($5K or more) we can often provide an answer in just one hour – as long as you make your application during standard company timings and permit us to utilise the advanced bank verification system to instantly verify your bank information online. If you opt to submit copies of your bank statements we can offer a decision in just an company day.
If you are applying for a Larger Business Loan ($100K to $500K) we might be likely to offer you with a conditional pre-approval within about six hours. Once you’ve signed the pre-approval, turnaround times are approximately 2-3 days to receive final approval. However, this may be quicker depending upon the circumstances for each application. Some transactions have received approval within 24 hours.
The quickest way to apply can be ensure you apply during normal company hours and let us use the modern bank verification to confirm your bank details online. If you choose to upload duplicates of your banking statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) We can usually provide an answer within an hour, provided you apply in normal business time and allow us to make use of the advanced bank verification system link to instantly verify your bank’s information online. If you choose to upload copies of your bank statements, we’ll be able to provide the decision within 1 business day.
For the Larger Business Loans ($100K to $500K) we could be able to provide you with conditional pre-approval within 6 hours. After you’ve signed the pre-approval, the turnaround time is about 2-3 days for final approval, however it could be faster based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The quickest method would be to make sure you apply during standard business hours. You can also allow us to use our advance bank verification link to confirm your bank details online. If you decide to send us copies of your bank accounts, it takes a bit longer.
How much can I borrow?
We offer loan amounts between $5,000 and $500,000. If you apply for a specific amount we look at a variety of aspects that determine how much we can lend you health that is your company and the extent of the repayments your business can support. The total amount of your loan will depend on the particular circumstances of your business.
If you apply for a certain amount, we consider a variety of factors to determine your health of your company as well as the amount of payments your business can afford. The amount you receive from your loan will be determined by the specifics for your company.
Fees & repayments
How do you charge for the cost of a business loan?
If you decide to apply for business loans with us company loans, we will assess the risk assessment for your company and offer you with a customised offer including loan amount, term and the interest rates. The business loan is a loan that is priced upfront and you’ll be aware in advance of the total amount to be paid, including any charges or interest.
What determines the amount I’m charged?
The interest rates on business loans rates differ based on various factors including the amount that is borrowed, what business assets the money will be used for in addition to the industry that the business is in, how long the business has been running and whether the company has sufficient cash flow to support the loan, and also the general well-being or financial standing of the business.
What are the charges?
There are no hidden costs for our company loans. You’ll know exactly how much you’ll be required to pay, and when, starting from the day you sign up. There’s no compounding and there are no additional charges (as long as you are able to make your payments on time).
We do not charge an Application Fee. You are able to request a credit loan with with no upfront cost or obligation to proceed.
The Origination Fee includes the expenses associated with establishing and managing the loan. It is only charged for this fee if you decide to take the loan. The Origination Fee for us is 2.5 percent of the amount of loan.
Can I repay the loan in advance?
You can repay the total amount of your loan early at any time.
If you decide to take this route, please talk to one of our helpful business loan experts. We will provide you with details for repayment and an early payout figure. This will be calculated as the sum of the principal remaining and any accrued interest at the time of early payout in addition to 1.5% of the principal remaining plus any outstanding fees.
How do repayments work?
To help you avoid missing payments and to work your cash flow cycle we provide payments that are either daily or weekly. They will be automatically deducted from your designated business account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and knowing how we collect the information we collect, use, share and safeguard your data, is vital and is a crucial part of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption techniques to protect your personal, sensitive and financial data and our funders are ISO 27001 qualified for our dedication to the security of our clients as well as their privacy. We make use of an advanced bank verification system that allows you to instantly verify your bank account information online to provide a fast response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing occurs when an business owner makes use of assets they own to get the funding. The asset may be an individual asset, such as the family home, or an company asset like a truck as well as a piece of machine.
The majority of lenders, including the major banks, prefer to make loans secured by assets. If you have trouble paying back the loan, your assets could be sold by the lender. In essence, it is the process of securing new financing by using the value of what you already have.
Should I require security to secure a business loan?
For loans up to $150,000 there is no requirement for asset security upfront to access the money However, we require a personal guarantee. require an individual guarantee. If you adhere to your loan commitments (as detailed in your loan contract document) and you are able to meet your obligations, asset security will never be needed. For loans over $150K typically, you will need the option of a personal guarantee and security in the form of the charge of assets.